SBI raises Rs 25,000 crore through QIP at Rs 817 a share

Mumbai: State Bank of India (SBI) issued 305.9 million shares to institutional investors at ₹817 apiece to raise ₹25,000 crore in the nation's biggest qualified institutional placement (QIP) to date.

The price of issuance was around the mid-point of the ₹806.75 to ₹831.70 price band the bank had set last week.

SBI did not disclose the investors in the biggest round of QIP to date, but said the application forms from investors and funds have been received in the escrow account by the bank on Monday.


"This landmark equity raise is a vote of confidence in SBI's solid fundamentals, prudent risk management and digital-first growth agenda," chairman CS Setty said in a statement accompanying the details of the stock issuance.

The book was 4.5 times oversubscribed. Foreign investors accounted for 64.3% of total demand. Marquee long-term investors received 88% of the final allocation, including 24% of the issue size placed with foreign long-term investors, the bank said.

In a separate notice, Life Insurance Corporation of India (LIC) said it had increased its shareholding in SBI from 9.21% to 9.49%, confirming that it was one of the investors in the bank's QIP. LIC said it spent ₹5,000 crore for the additional stake. The final issue price was at a 2% discount to SBI's closing price of ₹831.7 on the NSE on July 16, the day the QIP was announced.